e-Dialog Posts 49 Percent Revenue Growth in 2004

Emphasis on Strategy and Flexible Service Offerings Fuels Momentum in the Marketplace

LEXINGTON, Mass., February 1, 2005 – e-Dialog, a proven provider of advanced e-mail marketing solutions, today announced that demand for its market-leading technologies, products, strategies and services for permission-based marketers continued to be very strong in 2004. A combination of e-Dialog’s full-service offerings and self-service tools fueled the company’s 49 percent revenue increase, contributing to more than two years of profitability.

“We’ve known since our founding in 1997 that as the benefits of relevant, results-driven e-mail were realized by marketers, they would want to ensure that they were not just sending e-mail, but sending e-mail their customers wanted to receive,” said John Rizzi, chief executive officer of e-Dialog. “This simple principle, coupled with services built on marketing and technology expertise and driven by the wealth of online data, empowered us to customize our clients’ e-mail marketing programs according to their needs and take them to the next level of sophistication.”

Eighty percent of the e-mail delivered by e-Dialog benefited from the company’s robust data management and custom development services to transform complex customer data into actionable and relevant e-mail campaigns, while twenty percent of the company’s e-mail volume was sent by clients through Campaign Builder™, e-Dialog’s self-service campaign management tool. In addition, e-Dialog’s application engineering team developed more than 200 custom applications and its response management team handled more than 11.5 million inbound messages by hand, demonstrating the company’s dedication to create ongoing customer dialogs on behalf of its clients.

“Both our full-service and self-service offerings saw rapid growth last year. While there is an almost insatiable demand for strategy and analytics, some of our clients wish to operate either completely or partially on a self-service basis,” continued Rizzi. “The strength of e-Dialog is that we adapt our services and technologies to our clients instead of them having to adapt to a cookie-cutter solution. This strategy consistently boosts returns on their e-mail channel investment, and delivers long-term client satisfaction. We’re proud to have been the fastest growing e-mail marketing service provider for large companies in 2004.”

About e-Dialog Established in 1997, e-Dialog is a proven provider of advanced e-mail marketing technologies, products, strategies and services for permission-based e-mail marketers. The NFL, BMG Music Service, American Eagle Outfitters, TJX, Tesco, Marks & Spencer and SmartBargains are just a few of the 60 top marketers that rely on e-Dialog’s flexible solutions to efficiently turn complex customer data into actionable and relevant e-mail campaigns that produce unbeatable results. JupiterResearch ranked e-Dialog a leading e-mail marketing service provider in 2004 based on its value and market suitability, and highlighted its reporting, analytics and deliverability features as strong and comprehensive. With offices in Lexington, Mass., and London, England, e-Dialog is a privately-held company whose investors include Flagship Ventures, Commonwealth Capital, and the Interpublic Group of Companies (NYSE: IPG). For more information, visit www.e-dialog.com or contact Arthur Sweetser at 781-372-3353.